1. The statement and report which is
required by NRS 350.013 must
include:

(a) A brief narrative which describes each type of
indebtedness used or contemplated for use by the governing body or board;

(b) A schedule which sets forth:

(1) The contemplated date of the sale and the
amount of any bonds which have been approved by election but not yet sold;

(2) The contemplated date of an election or
other authorization and the amount of any bonds which are contemplated to be
issued before the end of the fiscal year following the date of the schedule;
and

(3) The amount of any other debts, such as
mortgages or capital leases, which the governing body or board contemplates
incurring before the end of the fiscal year following the date of the schedule;

(c) A schedule which sets forth, on a form provided
by the Department of Taxation, the amount of general obligation debt of the
political subdivision or general improvement district;

(d) A schedule which sets forth, on a form provided
by the Department of Taxation, the total amount of indebtedness of the
political subdivision or general improvement district;

(e) A schedule which sets forth, on a form provided
by the Department of Taxation, the amount of money required to satisfy the
indebtedness of the political subdivision or general improvement district for
the 5 years immediately following the date of the statement or report; and

(f) A schedule which sets forth, on a form provided
by the Department of Taxation, the amount of money required to satisfy each
debt of the political subdivision or general improvement district for each year
until the debt is retired.

2. The submission to the Department of
Taxation before July 1 of a copy of the statement and report submitted for the
same year to a debt management commission pursuant to NRS 350.013 fulfills the
requirements set forth in subsection 1 of NRS 354.6025.

3. For the purposes of this section,
“indebtedness” includes a debt which is:

(a) Legally payable from general revenues and is
backed by the full faith and credit of a governmental unit;

(b) Represented by securities of a local government
issued pursuant to chapter 350 of NRS;

[Tax Comm’n, Local Gov’t Reg. No. 23, eff. 7-2-82]—(NAC
A by R028-99, 1-27-2000; A by Com. on Local Gov’t Finance by R027-03, 12-16-2003)

MEDIUM-TERM OBLIGATIONS

NAC 350.100Medium-term obligation as appropriation or augmentation. (NRS 350.087, 360.090)A
medium-term obligation authorized pursuant to NRS 350.087 may constitute an
appropriation or budget augmentation or may augment resources as permitted by
statute and as specified in the resolution of the governing body of the local
government.

(Added to NAC by Tax Comm’n, eff. 7-9-96)

NAC 350.110Notice of intent. (NRS 350.087, 360.090)The
notice of intent to act on a resolution which authorizes a medium-term
obligation that is published by the governing body of a local government as
required pursuant to NRS 350.087
must include:

1. The time and place of the public hearing
during which the resolution will be voted on by the governing body;

2. The proposed method of repayment of the
medium-term obligation;

3. The total amount of the debt of the
medium-term obligation; and

4. The manner in which the money received
from the medium-term obligation will be used and the purpose thereof.

(Added to NAC by Tax Comm’n, eff. 7-9-96)

NAC 350.120Forwarding of documents to Department of Taxation following
authorization. (NRS 350.089, 360.090)After
the adoption of a resolution which authorizes a medium-term obligation, the
governing body of the local government shall forward to the Department of
Taxation:

1. A copy of the final resolution;

2. Excerpts from the minutes of the meeting
of the governing body during which the resolution was adopted, which include,
without limitation, the vote on the resolution and any comments made by the
governing body or a member of the public at the meeting;

3. Proof of the publication of the notice to
act on the resolution which authorizes a medium-term obligation as required
pursuant to NRS 350.087;

4. A written statement specifying:

(a) The source of the money to be used to repay the
debt incurred by the medium-term obligation; and

(b) All pertinent data supporting the ability of
the local government to repay the debt without affecting its tax rate,
including, without limitation, and only if applicable:

(1) Anticipated increases in revenues
available for repayment after determining anticipated reductions in revenues;

(2) Anticipated reductions in expenditures
available for repayment after determining anticipated increases in
expenditures; and

(3) Any amount of money which may be available
for repayment from the balance of a fund, reserve or contingency account;

5. The anticipated time required to enter
into the medium-term obligation;

6. The proposed amortization schedule for
repayment of the debt incurred by the medium-term obligation; and

7. Any other supporting data which the
governing body of the local government deems pertinent.

(Added to NAC by Tax Comm’n, eff. 7-9-96)

NAC 350.130Authorization void after 18 months. (NRS 350.089, 360.090)The
governing body of a local government which adopts a resolution authorizing a
medium-term obligation must act on such authorization not later than 18 months
following the approval of the Executive Director of the Department of Taxation,
except when the obligation is issued to pay for a contract for long-term
construction or for a program to acquire land. If the governing body does not
act within the time required, the authorization is void and a new resolution
authorizing a medium-term obligation must be adopted.

1. If the money for a medium-term obligation
is obtained from an existing fund of a local government, the resolution
authorizing the medium-term obligation must specify whether interest will be
charged and the rate thereof, if any. If the resolution specifies such a rate
of interest, the Executive Director of the Department of Taxation may, in
determining whether to approve the resolution pursuant to NRS 350.089, consider whether that
rate of interest reasonably reflects current market conditions and the duration
of the medium-term obligation.

2. If the resolution does not specify
whether interest will be charged on the medium-term obligation, no interest may
be charged.

(Added to NAC by Tax Comm’n, eff. 7-9-96; A by Com. on
Local Gov’t Finance by R135-10, 12-16-2010)

(3) Provides for the repayment of that
medium-term obligation without adopting a budget that includes a negative fund
balance in violation of subsection 5 of NRS 354.598;

(b) The accounting procedures of the borrowing
local government comply with generally accepted accounting principles for
government as prescribed by the Governmental Accounting Standards Board; and

(c) The lending local government agrees to the
revision.

2. As used in this section:

(a) “Borrowing local government” means a local
government or component unit of a local government which has obtained a
temporary interfund loan.

(b) “Component unit” means a separate legal entity
from a local government whose financial statements must be included in the
annual audit of that local government conducted pursuant to NRS 354.624.

(c) “Lending local government” means a local
government or component unit of a local government which has made a temporary
interfund loan.

(d) “Temporary interfund loan” has the meaning
ascribed to it in NAC 354.290.

(Added to NAC by Com. on Local Gov’t Finance by R135-10,
eff. 12-16-2010)

NAC 350.160Repayment. (NRS 360.090)The
period for repayment of the debt incurred by a medium-term obligation begins on
the date on which the debt is incurred. If the governing body of the local
government enters into a medium-term obligation in a manner in which the debt
will be incurred in installments, each installment must have a separate period
of repayment effective from the date on which the debt is incurred.

(Added to NAC by Tax Comm’n, eff. 7-9-96)

NAC 350.170Calculation of weighted average useful life of certain assets. (NRS 350.009, 350.091)

1. If a local government finances assets
with a medium-term obligation or an installment-purchase agreement having a
term of more than 5 years, the local government shall calculate the weighted
average useful life of the assets for the purpose of complying with the
provisions of subsection 4 of NRS
350.091.

2. To determine the useful life of the
assets, the local government may use:

(a) Publication 946 of the Internal Revenue Service
entitled “How to Depreciate Property,” which may be obtained free of charge on
the Internet from the website of the Internal Revenue Service at http://www.irs.gov/;
or

(b) Any other manual or source of information that
provides useful life if the local government, in the resolution adopted
pursuant to NRS 350.087
authorizing the medium-term obligation or installment-purchase agreement, makes
a finding that the weighted average term of the medium-term obligation or
installment-purchase agreement will not exceed the estimated weighted average
useful life of the assets being financed with the medium-term obligation or
installment-purchase agreement. If the Executive Director of the Department of
Taxation determines that the finding by the local government is unreasonable or
arbitrary, he or she may disapprove the resolution pursuant to NRS 350.089.

(Added to NAC by Com. on Local Gov’t Finance by R027-03,
eff. 12-16-2003)

(Added to NAC by Com. on Local Gov’t Finance by R030-05,
eff. 5-4-2006)

NAC 350.210Failure or refusal of governing body to adopt resolution
approving or objecting to proposal resulting in increase of rate of property
taxes. (NRS
350.009, 350.0135)If the
governing body of an entity that receives a notification of a proposal that
will result in an increase in the rate of property taxes pursuant to subsection
1 of NRS 350.0135 fails,
neglects or refuses to adopt a resolution approving or objecting to the proposal
described in the notice not later than 60 days after the date of the postmark
on the notification, the governing body shall be deemed to have waived its
right to object to the proposal.

(Added to NAC by Com. on Local Gov’t Finance by R030-05,
eff. 5-4-2006)

NAC 350.220Approval of request of municipality to reserve percentage of
remaining allowable increase of property taxes for future use. (NRS 350.009, 350.0135)If a
commission approves the request of a municipality to reserve a percentage of
the remaining allowable increase of property taxes for use in the future
pursuant to subsection 7 of NRS
350.0135:

1. The commission may limit the amount of
time that such a percentage may be reserved by the municipality.

2. Before March 15 of the current fiscal
year, the commission may express the amount of the reservation of the remaining
allowable increase of property taxes as a percentage of:

(a) The rate of property taxes allowable pursuant
to NRS 354.59811 for the
current fiscal year; or

(b) The rate of property taxes for the current
fiscal year as certified by the Nevada Tax Commission pursuant to NRS 361.4547.

3. After March 15 of the current fiscal
year, the commission shall express the amount of the reservation of the
remaining allowable increase of property taxes as a percentage of the rate of
property taxes allowable pursuant to NRS 354.59811 for the following
fiscal year.

4. Based on the percentage determined
pursuant to subsection 2 or 3, as applicable, the commission shall express the
amount of the reservation as a limitation on the number of cents which may be
levied.

(Added to NAC by Com. on Local Gov’t Finance by R030-05,
eff. 5-4-2006)

NAC 350.230Establishment and notification of deadline for submission by
municipality of certain proposals. (NRS 350.009, 350.0135)

1. A commission may establish a deadline for
the submission by a municipality of a proposal that will result in an increase
in the rate of property taxes or a request to reserve a percentage of the
remaining allowable increase of property taxes for use in the future.

2. If a commission establishes a deadline
pursuant to subsection 1, the commission shall notify all municipalities with
tax-levying powers within the county of the deadline within 30 days after
establishing the deadline.

(Added to NAC by Com. on Local Gov’t Finance by R030-05,
eff. 5-4-2006)

NAC 350.240Denial of certain proposals if increase in rate of property taxes
exceeds statutory limitation on total rate. (NRS 350.009, 350.0135)A
commission shall not approve a proposal that will result in an increase in the
rate of property taxes or a request to reserve a percentage of the remaining
allowable increase of property taxes for use in the future if the increase in
the rate of property taxes exceeds the limitation on the total rate of ad
valorem taxes set forth in NRS
361.453.

(Added to NAC by Com. on Local Gov’t Finance by R030-05,
eff. 5-4-2006)

NAC 350.250Notice of certain decisions of commission. (NRS 350.009, 350.0135)A
commission shall provide notice, in writing, of the decision of the commission
to the municipality requesting an increase in the rate of property taxes or a
reservation of a percentage of the remaining allowable increase of property
taxes for use in the future and to any other municipalities affected by the
decision.

(Added to NAC by Com. on Local Gov’t Finance by R030-05,
eff. 5-4-2006)